Summary: Companies in the defense industry offer a range of investment opportunities thanks to their diverse portfolios and the steady demand they enjoy. In this guide, we give a summary of the 3 military drone stocks to buy in 2024. To invest in the stocks on our list, investors can open an account with a reputable online stock broker like eToro.
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What are military drone stocks?
Drone stocks
The military drone market is large, but it may become increasingly more attractive for investment as it expands in the years to come. After all, the industry is projected to reach a value of $17 billion by 2027, which is a substantial growth from the $12 billion recorded in 2022.
Sure, Unmanned Aerial Vehicle (UAV) solutions are still expensive. But, as technology advances and various applications become more widely available, the development and sales of drone equipment are sure to increase.
Top 3 military drone stocks to buy in 2024
Investing in military and defense stocks can be a wise investment strategy for investors seeking stability and profitability, given that the arms industry is known for steady growth and large numbers (the US alone spent $877 billion on its military just in 2022). Nevertheless, it’s crucial to recognize that not all drone stocks possess equal potential, which means thoughtful consideration of various factors is mandatory before investing.
Here, we present a summary of 3 of some of the best military drone stocks to keep in consideration in 2024:
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1. Lockheed Martin (LMT)
Lockheed Martin is a global powerhouse in the aerospace and defense industries. The company offers a diverse array of products and services, encompassing aircraft, helicopters, missiles, satellites, and, of course, drones.
It’s worth noting that Lockheed Martin plays a significant role as a government contractor. In fact, around 50% of the company’s revenue comes from the US Department of Defense). This positions the LMT stock as an appealing investment opportunity for numerous investors, including NASA.
The corporation now also engages in the design and development of space transportation systems, and its portfolio includes the Trident intercontinental ballistic missile and the Orion spacecraft.
Lockheed Martin stock price
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2. Northrop Grumman (NOC)
Northrop Grumman is another prominent American defense corporation renowned for its advancements in stealth bomber technology. A key player in the United States nuclear deterrence strategy, known as the Nuclear Triad, the company contributes to intercontinental ballistic missiles (ICBMs), strategic bombers, and ballistic missile submarines.
With $36 billion in annual revenue reported for 2022, Northrop stands as one of the world’s largest producers of military technology and weapons. The company’s diverse portfolio spans projects ranging from advanced aircraft, missile systems, and autonomous flying systems to cybersecurity and satellite communications.
Northrop Grumman stock price
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3. Boeing (BA)
Boeing is a multinational corporation specializing in the design, manufacturing, and sale of airplanes, rockets, satellites, and missiles, recently also venturing into the world of military drones and uncrewed systems with its Boeing MQ-28. Additionally, Boeing offers leasing and aftersales support services and enjoys partnerships with the likes of NASA, solidifying its position as one of the foremost global aerospace and defense contractors.
Note
Boeing stock price
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Where to buy military drone stocks
Our go-to brokerage for military done stocks is eToro, a leading stock trading platform with millions of registered accounts and nifty trading features such as:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Charting tools;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of investing in military drone stocks
Pros
- High demand: Arms, vehicles, and tools with military applications typically have a stable industry demand as a lot of world governments spend substantial amounts on their militaries;
- Private and government contracts: Large military companies often have contracts with geopolitically dominant governments, which makes their revenue sources more robust and incomes more predictable;
- Dividends: Some defense companies, such as Lockheed Martin, pay solid dividends.
Cons
- Economic sensitivity: Defense stocks are appealing to investors seeking stable income, but they are sensitive to geopolitical events and governmental expenditure choices;
- Environmental concerns: The increasing global focus on ecological sustainability has the potential to impact the defense and aerospace sectors. For greener stocks, check out our guide on the top 3 solar energy stocks to buy in December 2023;
- Moral concerns: Investing in defense stocks also brings about some ethical considerations. In other words, some investors may have ethical reservations about making profits from companies involved in supporting military activities.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about military drone stocks
What are military drone stocks?
Military drone stocks are shares of companies that develop and manufacture unmanned aerial systems (UAS) used in combat and military applications.
Are military drone stocks considered stable investments?
Military stocks can be influenced by geopolitical events, regulatory developments, government contracts, technological developments, and so on. Therefore, investors should carefully assess all risks and market conditions before committing to any shares.
Are all military stocks drone stocks?
Any company that engages in the production, manufacturing, or distribution of military drones can be considered a military drone stock.
Where can I buy military drone stocks?
To buy military drone stocks, you can open an account with an online stock trading platform such as eToro.
